Accounting for IGCSE & O level - Accounting Procedures (Section 8 - No. 7)

If repairs were incorrectly debited to the premises account, what effect does this have on the financial statements?

Expenses understated, Profit overstated, Non-current assets overstated.

Expenses overstated, Profit understated, Non-current assets overstated.

Expenses overstated, Profit overstated, Non-current assets unaffected.

Expenses understated, Profit understated, Non-current assets unaffected.

Expenses are overstated and profit is understated, and non-current assets overstated